Taxes, Trade and Store Tours

There’s no question it’s been a busy summer in Washington. From pass-through tax deductions to SNAP data release and higher tariffs, there’s a long list of issues being debated in Washington right now that will affect independent retailers. Here’s an update from the government relations team at National Grocers Association (NGA).

Pass-Through Tax Deduction

Last week, the U.S. Department of the Treasury and Internal Revenue Service (IRS) clarified proposed rules that will allow pass-throughs that aggregate their businesses to receive the 20% tax deduction provided in the Tax Cuts and Jobs Act. This is very welcoming news for the independent supermarket industry.

SNAP Data Release

A release of retail SNAP data from the years 2005 to 2010 almost occurred last week when the 8th Circuit denied a stay and issued a mandate for the data’s release. FMI quickly took the issue up with the Supreme Court, which granted a temporary stay, but will decide as early as August 21 on whether to grant a longer-term stay on the data release as the underlying case is appealed to the Supreme Court.

While the SNAP data issue is being considered in the federal courts, including also a case in Texas district court to prevent the release of the data of Texas retailers, NGA’s government relations team is actively lobbying for a provision to be included in the upcoming Farm Bill that would permanently prevent the release of SNAP data. The Farm Bill deadline is September 30th, when current farm program funding expires.

Trade

On Tuesday of last week, the Trump Administration announced that beginning on August 23, it will collect 25% tariffs on an additional $16 billion in Chinese goods. The list of items in which this tariff will be imposed includes mainly chemical and industrial products, as well as technological items such as electric scooters and selfie sticks.

At this point, the total value of Chinese imports affected by the Trump tariffs is $50 billion, a sum that could significantly increase if the President continues to impose tariffs—as he has threatened to do.

NGA is currently doing research to determine how tariffs are impacting independent grocers. Email NGA’s Molly Pfaffenroth to share your story. 

Building Relationships with Congressional Store Tours

How do you ensure your elected officials understand how policy issues impact your day-to-day operations? A store tour—like the one National Grocers Association (NGA) recently set up for IGA retailer Tim Henderson—could make all the difference.

With the mid-term elections barreling down and so many pressing policy issues in play, Henderson, owner and operator of Henderson’s IGA in the small town of Valentine, Nebraska, was more than happy to oblige when NGA suggested a visit from Congressman Adrian Smith (NE-3).

“I know Congressman Smith and I know he always has the best interest of his district in mind, but I also know there’s no substitute for seeing things firsthand,” Henderson said.

Congressman Smith, whose expansive district is one of the largest in the country, covering 65,000 square miles and 68 counties, was happy to listen.

 “He traveled about 230 miles to get to the store, and then spent several hours talking to me, our employees, and our customers. He asked questions about what it’s like to run a family business, and all the things that are affecting how we operate. He was in no hurry, and when he left, we really felt like he’d heard our concerns and cared out the outcome,” Henderson said.  “That kind of relationship building is really what being an independent is all about.”

Congressional store tours are vital to NGA's advocacy efforts on behalf of IGA retailers.  If you are interested in hosting your legislator, please contact NGA today.